If so and if the funds you used for the payment came from a 529 plan, you may have to re-contribute the money to avoid being taxed and penalized.

*Note: This article is about a specific 529 program but the information applies to all of them. 

Due to the COVID-19 pandemic, you or your beneficiary may have received a refund for tuition, fees, room and board or other qualified higher education expenses. If your student’s eligible educational institution issued you a refund, here are a few things to know about recontributing the funds to your my529 account.

To avoid tax penalties, the recontribution must:

  • Occur within 60 days of the refund date
  • Not exceed the refunded amount
  • Be deposited into a 529 account for the same beneficiary

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